Silver Price Forecast: XAG/USD bounces off 100-hour SMA pivotal support; climbs to $66.00

Silver regains positive traction following the previous day’s pullback and a negative close.
The setup remains tilted in favor of bulls, though overbought daily RSI warrants caution.
Any corrective slide could be seen as a buying opportunity near the 100-hour SMA support.

Haresh Menghani FXStreet

Silver (XAG/USD) attracts some dip-buying near mid-$64.00s during the Asian session on Friday and stalls the previous day's modest retracement slide. The white metal climb back closer to the $66.00 round figure in the last hour and remain well within the striking distance of the all-time peak touched on Wednesday.

The XAG/USD once again finds decent support near the upward-sloping 100-hour Simple Moving Average (SMA), keeping buyers in control. It offers dynamic support at $64.75, and holding above this rising average would preserve the bullish tone. The Moving Average Convergence Divergence (MACD) histogram has turned positive and is expanding, suggesting the MACD line has crossed above the Signal line near the zero level. Momentum improves, and a sustained push further into positive territory would bolster the upside bias.

The Relative Strength Index (RSI) stands at 56, neutral-to-bullish and below overbought, supporting scope for further gains if buyers maintain control. However, the daily RSI is flashing overstretched conditions, which makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. This, in turn, suggests that the XAG/USD could face some intermediate hurdle near the $66.50-$66.55 region.

This is followed by the record high, around the $67.00 neighborhood, which should cap the upside for the XAG/USD. A sustained strength beyond the said handle, however, will be seen as a fresh trigger for bullish traders and reaffirm the near-term positive outlook.

On the flip side, the $65.40-$65.35 region now seems to protect the immediate downside ahead of the $65.00 psychological mark. This is closely followed by the 100-hour SMA pivotal support, around the $64.75 region, which, if broken decisively, might prompt some technical selling and pave the way for a deeper corrective decline. The XAG/USD might then accelerate the downfall towards testing sub-$64.00 levels before eventually dropping to the $63.35 intermediate support en route to the $63.00 mark.

(A part of the technical analysis of this story was written with the help of an AI tool)

XAG/USD 1-hour chart

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold pops to two-week highs near $4,150

Gold builds on Wednesday’s sharp rebound and flirts with the $4,150 mark per troy ounce on Thursday. The precious metal extends it recovery on the back of the irresolute price action of the Greenback and mixed US Treasury yields following the US midterms elections.

TRUMP token hits record low amid mounting selling pressure

Ripple and Stellar extend their recovery as bearish pressure begins to ease for both altcoins. XRP trades above $1.30 after breaking above the upper trendline of a falling channel pattern, while XLM holds above $0.168 and approaches resistance at $0.173. Meanwhile, improving derivatives metrics and strengthening momentum indicators hint at a potential for further recovery.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.